When a product experiences growth in sales revenue and profits, reaches a peak, and then declines, it goes through which of the following?
A) cyclical phases
B) product stages
C) product growth and decline
D) the product life cycle

Question

Quizplus · Accepted Answer

The scenario described in the question is a classic example of the product life cycle, which is characterized by stages of growth, maturity, and decline. The product initially experiences growth in sales and profits as it gains popularity and acceptance in the market. Over time, as competition increases and market saturation sets in, sales and profits plateau and eventually decline. This cycle is seen across a wide range of products and industries.

When a Product Experiences Growth in Sales Revenue and Profits